1. SPOT : Settlement of funds takes place on the second working day

2. If spot GBP is 1.6000, and 1 month forward as 1.6050, then GBP is Compounded

3. The interest factor is the basic factor in arriving at the forward rate, in a perfect market.

4. The date of settlement of funds is known as value date. (credited into Nostro account on 10 and

message received by our bank on 11th what is value date. 11th

5. Problem based on Excess of assets over the liabilities (Long position: The buying of a security such as a

stock, commodity or currency, with the expectation that the asset will rise in value.)

6. Who prescribes guidelines and rules of the game in forex market operations, merchant rates, quotations

etc. FEDAI

7. For retirement of import bill : 1) TT Buying 2) TT Selling 3) Bill buying rate 4) non

8. Cross rate problem : GBP/USD & USD/INR combination.

9. Problem on Bill due date + usance period 30 days. Due date is 17 Feb in exam answer is none of

the above.

10. The risk of failure of the counter party during the course of settlement due to the time zone

differences between the two currencies to be exchanged Answer: Herstatt risk.

11. To trigger the limit or say maximum loss limit for adverse movement of rates. Stop loss limit

12. Mumbai branch of abc bank maintaining an USD account with New York branch of xyz bank. In

the books of abc Mumbai branch NOSTRO account

13. In Problem one straight question for VOSTRO account.

14. In same problem on question on mirror account. (reconciliation of entries in the nostro account

in abc bank Mumbai books.)

15. TARGET facilitates receipts and payments of funds across the EURO Zone on RTGS system.

16. If a person abroad want to send money speedily he will use 1) SWIFT 2) RTGS 3) NEFT 4) PAPER

DD.

17. Which is wrong statement for OCB

1) Predominantly owned by NRI

2) Owner ship of NRIs should be minimum 60%

3) The facilities for investment into India, granted to OCBs were almost similar to those granted

to individual NRI. (3 is the Answer: Because now not allowed from 16.09.2003)

18) A is an Indian origin person married a foreigner B. Got 2 sons M & N. On M married a oman lady

f, N is doctor settled in Pakistan by marring G.

1ST question) B can open NRI account jointly with A

2nd question) M is an NRI

3rd question) G cannot open NRI account as she is a Pakistani.

19) UCPDC-600 all are irrevocable LC

20) Back to Back LC : on the strength of export LC.

21) The importer id required to submit Bill of entry, evidencing import of good into India.

22) Ecgc classification - 7

23) The ultimate responsibility for designing and implementation of ICAAP lies with 1) banks board

of directors 2) RBI 3) FEDAI

24) Who is the nodal agency of EMF EXIM Bank

25) By using interest rate swaps, forward rate agreements between 2 currencies, using cross

currency or financial futures. Interest Rate Risk is mitigated

26) running ac facility gives Embedded option risk

27) LC discount had default risk which leads to funding risk

28) long duration bonds are more Sensitive

29) prepayment of loans Embedded option risk

30) how may diamond dollar accounts an importer can maintain 5

31) CBLO is issued by CCIL

32) Not a constituent part of tire ii capital innovative perpetual debt instruments

33) If the daily volatility of the stock is .02 % what is it 10 day volatility